Kenyan households continued to face financial pressure as reported income growth slowed during the second quarter of the year, forcing many consumers to seek additional sources of income, adjust spending patterns and carefully manage debt commitments.
These are among the findings in TransUnion’s Q2 2026 Consumer Pulse Study, which also revealed that only 30% consumers reported an income increase over the preceding three months, down significantly from 42% a year ago. The decline in reported income growth was primarily driven by reduced salaries (27%), job losses (24%) and business closures or declining orders (23%).
Despite these pressures, many consumers still remain cautiously optimistic about the future. Nearly eight in ten consumers (78%) expected their income to increase over the next 12 months, down five percentage points year-over-year (YoY). The decline in optimism was most notable among Gen Z2 consumers, reflecting greater income and employment pressures facing younger consumers.
The proportion of consumers able to pay bills and loans remained unchanged from a year ago at 61%. However younger consumers were facing growing financial strain. More than half of Gen Z respondents (54%) reported being unable to meet all of their financial obligations, representing a seven-percentage-point YoY increase.
Many households took proactive steps to manage financial pressures. Among those unable to pay at least one of their bills and loans in full, half (50%) planned to make partial payments. Another 50% intended to supplement their incomes through gig work to pay bills, especially Gen Z (54%) and Gen X (62%). Overall, more than a quarter (28%) expected to rely on savings or borrow from friends and family.
The findings highlight the growing importance of alternative income sources as consumers seek practical ways to maintain financial stability.
Looking ahead, consumers expect to remain cautious with their spending. More than half (53%) planned to reduce discretionary spending like dining out, travel and entertainment, while 48% intended to cut back on major purchases like appliances and vehicles. Four in ten (40%) anticipated reducing retail spending. At the same time, 41% expected to increase spending on bills and loan repayments as they prioritised essential financial commitments.
“Kenyan consumers are demonstrating remarkable resilience in the face of slower income growth,” said Morris Maina, chief executive officer of TransUnion Kenya. “Many households are diversifying income streams, prioritising essential spending and making more deliberate decisions about credit. These behaviours reflect a growing focus on financial sustainability and long-term financial stability.”
More Kenyans Feel They Can Access Credit When They Need It
Access to credit remained a priority for Kenyan consumers, with nearly three-quarters (73%) of consumers viewing it as very or extremely important. Encouragingly, more consumers believed they had sufficient access to credit and lending products, 40% during the most recent survey compared to 36% a year ago.
The gradual improvement in perceived financial inclusion reflects continued investment by banks in digital channels, mobile technology and electronic payment platforms that are helping to make formal financial services more accessible and convenient for consumers across the country.
Despite improved access, consumers are becoming more selective about taking on new debt. While 57% of consumers expected to apply for new credit or refinance existing facilities over the next 12 months, that was down from 69% a year earlier as households remained focused on affordability and managing existing financial commitments.
The decline was particularly evident among Millennials whose intention to seek credit dropped by 15 percentage points YoY to 60%, reflecting their greater financing needs amid growing financial pressures. Among prospective applicants, personal loans remained the preferred form of credit, cited by 53% of consumers. Interest in mobile loans increased significantly to 45%, up six percentage points from a year ago, highlighting the growing role of digital lending platforms in Kenya’s credit market.
Meanwhile, more than one quarter (27%) of consumers indicated they plan to use buy now, pay later products, reflecting significant demand for flexible short-term financing solutions that can help manage immediate household expenses.
Almost Eight in Ten Kenyans Targeted by Digital Fraud Attempts
Digital fraud continued to be part of everyday life for many Kenyan consumers. Nearly eight in ten (77%) reported being targeted by email, online, phone call or text message fraud attempts during the previous three months, underscoring the scale of fraud threats in an increasingly digital economy.
The proportion of those who said they were targeted with digital fraud but didn’t fall for the scam was down slightly from 72% last year to 68%, and 9% reported they had fallen victim, an improvement from 10% in Q2 2025. Gen Z consumers remained the most vulnerable among surveyed age groups, with 12% reporting they had become a victim of a digital fraud scheme.
Among those notified in the last three months that details about their identities and/or online accounts were stolen, 57% said they changed the password on the affected account, while 54% reported updating passwords across other accounts. Nearly half (46%) said they checked their accounts for unauthorised activity.
Broader cybersecurity awareness also appeared to be consistent. During the previous 60 days in response to cybersecurity concerns, 72% of consumers reported changing passwords as a precautionary measure, while half (50%) said they enabled passwordless login options or multi-factor authentication. More than one-third (36%) reviewed their credit reports for potentially fraudulent activity, reflecting growing awareness of the importance of monitoring personal financial information.
“It’s encouraging that consumers are proactive about protecting their financial information,” said Maina. “From strengthening account security to monitoring credit reports, Kenyans are taking meaningful steps to safeguard themselves against fraud. As digital adoption continues to grow, ongoing consumer education and fraud prevention solutions will remain critical to helping people participate in the economy with confidence.”
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